wipe the slate clean. chance get organized. avoid overscheduling. also, let bell hemmer out of the backyard pleasure pit. >> ericif greg doesn't have a one more thing he takes the horoscope. >> andrea: you don't a backyard. >> greg: i do but it's underground. take a storage container and drop it in there. >> bob: hemmer down there? >> kimberly: he wasn't on air today. >> andrea: that is it for us. thank you for watching. see you here tomorrow. at 5:00. >> doug: pessimism and frustration on capitol hill as fiscal cliff talks stall and

the clock races forward. this is "special report." good evening. i'm doug mckelway in for bret baier. four days until we head to the fiscal cliff. now it looks like childhood i go, you go games with neither side showing a willing nose go first. mike emanuel on where he head now. >> reporter: pessimistic tone for heading for the fiscal cliff in days. president obama and senators cut the christmas vacation short. the leader is happy to review what the president has in mind but to date they have not put forward a plan. late today, mcconnell

expressed frustration. >> this is a conversation we should have had months ago. republicans aren't about to write a blank check or anything that senate democrats put forward just because we find ourselves at the essential. >> asked if he was going over the cliff, biden joked cliff? what cliff? this has been operated with a dictatorship of the speaker. not allowing the vast majority of the representatives to get what they want.

they want them to return in case a deal is in the final hours. today, the u.s. is heading over the cliff. >> what goes away next week is the bush tax cut that they loathed since they went in place a secon decade ago. don't assume the president wants to cut a deal. he wants to see if he'll be blamed for it before they negotiate. they talk about the meeting tomorrow with the president and key congressional leaders. >> thank you. if the fiscal cliff can be avoided there is another gigantic hurdle awaiting the

lawmakers. >> they will hit the credit limit of $16.4 trillion on december 31. the nation thereafter can't pay the bills unless congress raises the limit. >> with a new congress in january we need to revisit an finally give ourselves the determination to solve not only our short-term debt but the long-term debt. >> they raised the debt limit 11 times in a decade. most recently in august 2011 after a bruising political fight. democrats accuse republicans of using the debt limit as political "leverage" to press for spending cuts. a point they tried to make

with a jarring comparison. >> this is somewhat to taking your child hos tam and saying i'll shoot my child if you don't do what i want done. you don't want to shoot your child. no leader wants to default on the debt. >> they said there is breathing room and the treasury department will take extraordinary measures authorized by law. that will create head room under the debt limit. under normal circumstances circs that amount head room would last two months. but it's difficult to predict how long the money will last. where does the money come from? they will raise retirement fund and there is a slush fund from the exchange raid.

>> the bigger problem is getting borrowing under control. it puts the nation at risk immediately for a crit downgrade but it means higher taxes and lower standard of living for future generations. doug? >> doug: the stocks fell. the dow lost 18. s&p 500 gave back two. nasdaq down four. >> doug: president george h.w. bush is at a hospital after having a stubborn fever. >> joe biden on hand to swear in brian shot as the hawaii newest senator. he was selected to fill the vacancy.

after the attack on benghazi there was widespread speculation some would lose their job after the security failure but it has nod happened. and john kerry's nomination as secretary of state could hang in the balance. peter doocy has the pieces together. >> accountability has been brought to bear with regard to the individuals who are, who are senior. >> accountability apparently does not come from a pink slip, because none of the four state department officials placed on legislative leave for failures in the run township the september 11 terror -- runup to the september 11 terrorist attack lost their job. according to a new york post. the spokesperson said the secretary accepted eric

boswell decision to resign. as assistant secretary for diplomatic security effective immediately. the other three individuals were relieved of the current duties. chairwoman of the house foreign affairs committee now says that response from the state department is purposefully misleading. >> the truth is nobody is out. they just, shifted that chairs and in fact if you want to screw up big-time, get a job at senior levels at the state department because apparently they don't let anybody go. >> hard to fire anybody, particularly for the foreign service officers even when they leave the particular position. they still held a government job. >> secretary of state hillary clinton still hasn't testified before congress about the benghazi attacks, because she suffered concussion after being ill. but they want her testimony before they hold any hearings to confirm her successor. >> before i want a new secretary of state, i would

like for the secretary to come and testify about the culture. that is helpful to come in and understand what the thinking was at that time. >> john kerry in line for the next secretary of state says clinton will appear before the foreign relations committee in january. >> peter doocy, thank you. >> lisa jackson is stepping down after four years on the job. the tenure marked by the high-profile brawls over air pollution, keystone x.l. pipeline. and new controls on coal fired plants. they claim a recent decision by justice department to release thousands of the e-mails next month may have contributed to the resignatio

resignation. leland vittert is following all the action. >> russia foreign minister warned today of a bloody chaos in syria if there wasn't a political solution. many believe the country sectarian civil war long passed that grim mark. they flew over the stronghold at suburb and an amateur photographer captured the bomb drop and explode nearby. still outdone, the rebels remain undeterred, even drafting tractors to service to tow the heavy artillery. the rebels clearly with momentum on their side refuse to discuss a plan allowing assad to stay in power in the transition period. wounded fighter explained the rebel mentality.

"we will keep going until we reach bashar assad's palace," he said, "from the hospital bed." rebels capturing more ground and prospect of a long civil war scene unavoidable. israel will do the utmost to defend itself against threat that the israeli prime minister in graduation from the pilot. netanyahu himself flew to jordan for a meeting with the king apt how to secure syria's chemical weapon. jordan knows firsthand problem of syria civil war. hundredhundreds if not thousandf syrian ref few gees enter the kingdom every day. we see bodies and blood in the streets says this man. heading to safety. >> in many ways the syrian civil war is a proxy war in arab world. both sides have little interest in peace deal and they are happy to supply

weapons and money for as long as syrians are willing to kill each other. doug? >> doug: thank you, leland vittert. in a bold move, putin says he will sign a bill banning americans from adopting russian children. thousands of russian childrens adopted to american homes more than from any other country. three-quarter of a million children in russia lack parental custody. serendipitous dui. we'll explain in grapevine. up next, the deadly storm make post holiday unbearable for many. we bring you a live update.

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>> doug: a powerful winter storm brought snow to the northeast and driving rain and wind to areas along the coast that cost death, power outals and much more. we have the latest now from northeastern pennsylvania. >> northeast is starting to dig out after a massive winter storm slammed the region. dumping up to two feet of snow across upstate new york in northern engler. >> it's -- northern new england. >> it's cold. a lot of snow and work but has to be done. >> near wide-out conditions from ohio to maine. >> i have seen ten cars in an accident. i saw a le xus in a ditch.

>> icy and accidents. slow, white-knuckle driving. >> heavy rain and strong winds pounded the coastal areas devastated by superstorm sandy less than two months ago. >> the weather causing headaches in the roadway and sky, stranding travelers from dallas to boston. in pittsburgh, plane got stuck on the tarmac for two hours while 2,000 flights have been canceled since tuesday. roads are impassable. >> it was a 25-minute drive usually. tonight is an hour. >> some are taking the disruption in stride. >> for thus isn't too much of a problem. we're canadians. we're more used to. this it's okay. >> a lot of powder.

coming down fast. >> doug, the storm is blamed for 16 deaths since christmas day. most of them in the midwest. we can tell you, too, that the dangerous cans are expected to persist throughout the northeast so there are winter weather advisories in place. forecasters are predicting another four to eight inches of snow in northern maine. back to you. >> doug: all right. stay warm out there. thank you. pastor of alabama church wiped out by tornado vowed to rebuild. he is keeping his word, but it hasn't been easy. correspondent elizabeth prann looks at the red tape between alberta baptist and new house of worship. >> i heard the wind. >> 82-year-old dorothy couldn't believe her eyes when she saw what the 2011 tornadoes did to her tuscaloosa church. >> i was shocked to see how much damage it did. >> after serving the community since 1920, alberta baptist

was danieled beyond repair when the storm hit. congregants were forced to use another church miles away for sunday prayer. >> the heart of the city was ripped apart by the tornado. >> the spirit of service still remains on the old site. parishioners use parking lot for weekly meetings and the community service. >> we became a distribution spot. >> people were coming in from all over the united states. with supplies, food, clothing. >> for more than a year. the state of the church was uncertain. roadblocks like reanalysis tants from insurance companies and the special building permits required by fema threatped reconstruction plans. but the charm leaders worked hard to clear hurdles and cut through red tape. >> we didn't know if we could come back to the original site now. the way ispayed an we're delighted. >> church members didn't have a permanent home to worship this christmas, they know with each block laid, the charm gets closer to the goal.

john matthew says he has faith next christmas will be better. >> in the midst of the worst there are good things to come out, because god is always at work. >> despite ongoing construction, church members found time to help out the community. they handed out toys and food to 100 needy families in tuscaloosa in time for christmas. doug? >> thank you, elizabeth. >> doug: for embattled toyota a huge legal issue ended and another remains. $1 billion proposed pay-out settles lawsuits from owners who claim that value of the vehicles plunged after recalls oaf sudden and intended acceleration. trials over injuries and the death caused by the defects are expected to start in february. even though a study by nasa engineers and the d.o.t. found no electronic clutch to call the sudden acceleration in the cars. still ahead. dan goes head hunting here -- canada goes head hunting in the u.s.. if we do go over the fiscal cliff get ready to pay more for something that you probably buy by the gallon. initiated.

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♪ ♪ >> doug: nearly 15,000 union dock work eithers from massachusetts to texas are planning a strike primarily over container royalties. federal mediators are trying to avoid the outcome but the talks broke down last week. two days to find a deal before the strike. courtesy of a truman era law involving milk. dominic di-natale on the cliff that isn't getting much attention but should. >> cow option the cliff. or at least the milk. based on the fiscal cliff as a deadline is approaching. milk cliff. part of the stalled farm bill

with 35 billion in cuts. if the by doesn't make it through congress, they will be forced to boy quantity of milk under a trueman era law. it could send prices $6 to $8 a gallon. because the government would be obligated to pay twice the wholesale rate. shortage in commercial supplies to spike the price that consumers pay. >> the farm bill is like a low-hanging ornament on the congressional christmas tree if they embrace it, they can come up with tens of billions of dollars in budget savings. the precaution the department is preparing for the law to take effect. >> this is a bad outcome. let me be clear about this. i don't think we should want nor should we advocate for nor

should congress consider it a good outcome that a permanent law goes in effect. >> it's not just cows going over the cliff. it could be crops, too. >> wheat and corn, their permanent farm law price support wouldn't kick in, until the growing season. those pieces of legislation are tried to the growing season for the crops. >> the law was introduced as a poison pill to scare congress to pass a farm bill. >> it would be to fold it in the farm bill but thane is not moving. >> eleanor holmes nor top held a press conference with vincent gray to call on the house republicans to restore the district vote on the house floor that was taken away last year. the change would give her to

give her ability to proposed changes but not on the passal of legislation itself. >> imagine being fired for being too good looking and find out that the law is not on your side. also guns may be coming to a school near you. find out what is thinking about arming. and the grapevine is up next.

>> doug: now fresh pickings from the political grapevine. arizona could soon have guns in schools. the state attorney general proposed program to train one person at each school to use a firearm. mission to the training, the school principal or designated staff member would have access to a secured firearm on school grounds. the a.g. said the proposal is analogous to pilots on planes. democratic minority at the statehouse fired back saying this is a simple horribly, horrible idea. plan would be voluntary. iowa supreme court ruled a dentist was within his legal rights to fire a female

employee. he and his wife considered "irresistible attraction." the lawyer called it a victory of family values. the all male supreme court agreed noting the dismissal may be unfair but was not unlawful because it was motivated from feelings and emotion, not gender. the defendant's lawyer criticized the ruling saying they sent a message to women that men can't be responsible for their sexual desires and if they get out of hand, then women can be legally fired for it. alcoholics anonymous requires recognition of a higher power. they power might have been at play in vermont. a man faces drunken driving charges after driving what he thought was a parking lot. he was on the wilson house lawn, the birth place of alcoholics anonymous cofounder bill wilson. it hosts several a.a. meetings

a week. the driver is due in court in two weeks. job seekers in this country might want to consider looking for work farther north. canadian initiative targets americans. it appears the skilled workers willing to tolerate the cold are hot commodity across the border. anita vogel explains. >> from california desert to great white north. canada hoping to lure skilled workers across the border. >> we have a lot of people retiring and we have major infrastructure projects built, hydroelectric, ports, infrastructure, oil and gas. it's endless. >> canada is looking to double oil production in ten years but it needs more trained workers. >> the kind of positions that are open are people who are engineers, people who welding

skills, people who have skill sets in construction. >> they are looking by posting ads on youtube and hosting job fair with the health of u.s. officials. >> john fontain is one of 600 people who stood in line at job fair near palm springs, california. he is willing to move to support his two young children. >> everybody has to make sacrifices in life to go anywhere. an opportunity presents itself you might as well reach out and grab it. >> with british columbia and alberta with a skilled worker shortal of more than 150,000 in the next decade americans have an opportunity to earn big money. up to $150,000 a year or more for some trades. the average temperature here in the winter hovers around frozing but the province of alberta boasts a household median income of $83,000 compared to $50,000 in the u.s. so many canadian firms are hoping americans won't worry

so much about the weather and focus instead on the cold hard cash. iron worker mike riordan left minnesota were the edmonton which serves as a staging ground for many of the big oil companies. he is now making twice what he was back home. >> so much work out there. the opportunities are endless up here right now. there is a shortal of workers. you could make good money. >> some americans relocated, others choose to send the money back home. anita vogel, fox news. >> doug: end tov year is approaching, as you know, for the next few nights we'll look at highs and lows 20619. tonight a look back at the year in business. >> three things matter. economy, economy, economy. 2019 saw recovery threatped to fall in recession and the year in business saw many others

fall from grace as well. five banks accused of abuse i mortgage practices agreeing to $25 billion government settlement. it may have helped borrowers but it didn't help rebuild the still struggling housing market millions are unemployed or dropped out of the labor market and recovery struggled all year. it hit the market over here. euro zone sinking back to recession and made the stocks sink, too. plenty of changes in the corner offices, shakeup at barclay's, top execs resigning over whether lenders submit artificially low libor rate. citigroup, pandit resigning from his position.

chick-fil-a executives after they spoke out about gay americans. no more twinkies for now. hostess filed for bankruptcy over union fight. no pretty picture at kodak either. it's failed to adapt to the digital photographfy. the worst u.s. drought in five decades scorching much of the u.s. raising proxs on corn to beef. in tech news, tablet wars continue. apple ipad mini and the microsoft surface tablet battling it out for the holiday shopping dollars. facebook looked like it would get a life on wall street with the initial public offering. but worries about re-knews scared investors and it wasn't the phenomenal everyone

expected. face calf cliff is a real cliff hanger as washington tried to make a deal with half a trillion in tax increases and spending cuts looming. look at the year in biz. no new york, brenda buttner. >> doug: thank you. lawmakers have two being assignments to finish before the end of the year. up next, i ask the fox all-stars if congress can get it all done. lot of weight, c-max has a nice little trait, you see, c-max helps you load your freight, with its foot-activated lift gate. but that's not all you'll see, cause c-max also beats prius v, with better mpg. say hi to the all-new 47 combined mpg c-max hybrid.

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he shouldn't have let them go. they're not here. john boehner cares more about keeping the speakership than keeping the nation on firm financial footing. >> i'm frustrated because we have been asking the president and the democrats to work with us on a bipartisan agreement for months. literally for months. >> doug: late breaking news from mitch mcconnell's office. we hear all parties have been invited to a meeting at the white house tomorrow. however, we are hearing also from the senior democratic aides there is no such meeting and from boehner's people that they haven't been invited. welcome to washington. fiscal cliff negotiations as if to signify how america wants the parties to come together. starbucks barristas today are

hand signing each of the coffee cup with the words "come together." anything will do at this point. bring in the panel. steve hayes for "weekly standard." a.b. stoddard, associate editor of the hill. sindcated columnist charles krauthammer. a.b., the res tent numbers-cruncher. what do you make of the back and forth today? >> today was about the drama on both sides and blame game and showing they were going to come and call e want to get down to business before december 31, which is monday. we're not, there are no plans. no paperwork. there are conflicting reports about the meeting. it's all kind of depressing. when you poke arp you find out that the house is returning on sunday. but beyond that, nobody knows anything. >> doug: steve? >> yeah. today, nothing happened other than people using warn-out talking points and a lot of misinformation. harry reid is still blaming grover norquist.

send him a memo that norquist took himself out of the discussion a week ago when he backed the house republican plan "b." it's like the old stale talking points. for me, the big picture if you take a step back from this, the big picture story here is one of misplaced outrage. media folks with the commentators on all sides complaining there is a lack of compromise. we need comedy in washington. everybody should come together as starbucks barristas want. the real outrage is what started as an effort to trim the size and scope of government, the push tax cuts a decade ago or whether it was the debate over the debt ceiling, just over a year ago, is going to likely end up at asen effort to expand the size and scope of government. that is something that can only happen in washington. you have people that come together to limit government and bunch of contortions and missed opportunities and bad negotiating, it becomes a de facto expansion of government. >> charles? >> well, you know, there are

two events that will happen january 1. one is the fiscal cliff, which i still think is likely, likely we will go over. maybe 60% chance. there could belag-minute proposal if obama is somewhat generous, not as arrogant and offers something that a small number of republicans in the house could support. there is a scenario where you wouldn't go over the cliff. he proposes a slight compromise on the level at which you get the higher taxes, $400,000. extension of unemployment stops with that. essentially. then if boehner were to allow a free open vote, then you could get 180 democrats plus 30 republicans. it could happen. >> doug: voila. >> that is the only scenario. possible one. >> doug: sounds so easy. >> yeah. a lot of this stuff is in principle easy. remember, obama was never interested in solving the fiscal issues. he wanted to break the republicans.

he did. there is no civil war on the republican side that makes him sovereign in washington. a great political achievement. the other event is the debt ceiling. happening on january 1. the delicious irony, he could go over the cliff. the debt ceiling is easier to stall, because he needs torrent of income for government. decrease in spending. as a result, the debt croling is postponed. so it's got its little cheerrished curlieques in here. iron this through. enjoy. helps the country one bit. >> on the subject of the debt ceiling, if you add urgency to the component of washington there. geithner sent a letter to all the leader ins the house and senate saying, "obama and the democrats seek increase in debt ceiling as part of any agreement" --" reading the wrong thing. writing to inform you the letter said that the statutory debt limit will be reached on

december 31, 2012, and the treasury department will begin taking extraordinary measures by law that the united states would otherwise default on the legal obligation. consider what the majority whip in the house said this afternoon. listen to this. >> this is somewhat like taking your child hostage and saying to somebody else i'm going to shoot my child if you don't do what i want done. you don't want to shoot your child. there is no republican lead they're wants to default on our debt. >> doug: is this productive? >> no, it's not. >> none of this is. the problem is that charles is somewhat right that the letter from secretary treasury geithner is not true and he would never inform leaders in congress we only had five days before we discuss the default. that wouldn't happen in a real world. it wasn't accurate. the speaker told the membership today he thinks it's more like february.

charles is right. you get more revenue in, if you go over the cliff. they won't keep that it way. they wouldn't restore tax cuts. combination would be too severe of the spending cuths with all the tax cuts gone. that becomes the enormous fight. you do get up involved in late january or late february with the revenue. it's an enormous fight, amount we raise the debt creeling to amount they cut debt ceiling. a fight that obama should not want to have. it's interesting to me if he doesn't act in the next couple of days with what charles calls a generous deal he gets himself in to really unstable waters, economically. something we have never seen before. then we look at the global waters rattling toward real default, not the january 1 cliff. republicans would be blamed initially but he would be blamed ultimately. >> this argument and is so

ethereal with the numbers baptered back and forth they can't grasp it. one component is the farm bill that expires at the end of this lame duck session if it expires and we go to 1949 formula for calculating milk price supports. back in 1949, most cows in the country were milked by hand. what it ostensibly means for you is gallon could cost $6-$8. citizen against government waste says it's cornucopia of wasteful, silly programs that many wish should be allowed to die. the statement goes op and on. what is going to be the fate of the farm bill? >> good question. asnatetive wisconsin, i would like to see the dairy farmers do well. citizens against government waste is right on this. the idea we are going back to 1949 law that needs updating to avoid a jump and spike in

milk prices suggest, it tells you evening that you need the know about the way government is operating op a federal level today. >> he used to milk his cows by hand. >> with my feet, right? >> is there not crop insurance or milk insurance that farmers could buy on private market to set the problem? >> i think if we went over the milk cliff it would be a good idea. people actually saw the milk price double. it would be less abstract than watching a debt clock. they would finally understand we have the insane laws, that acquire barnacles over the decades. the farm laws are the worst. they are all kind of pressure, special interest favors. pay yufs that make no economic sense. wipe them out and start over. it would be good if they were awakened how insane the system is.

>> doug: next up, are some state department officials getting off easy in the benghazi scandal? [ male announcer ] when was the last time something made your jaw drop? campbell's has 24 new soups that will make it drop over, and over again. ♪

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that report is extremely detailed. it's very critical of both inadequacies in our security and in decisions and actions that were taken. immediately accountability has been brought to bear. with regard to four individuals. who are are senior. >> the truth is that nobody is out. they shifted the chairs and in fact, if you want to screw up big-time, get a job at senior levels at the state department because apparently they don't let anybody go.

even after this terrible terrorist attack. >> representative in the house foreign affairs committee commenting on reports that the four state department employees who were held responsible for the benghazi debacle are very much employed and the state department has not denied the accusation. meanwhile, where is the secretary of state? we heard very, very it will from her in regard to benghaz benghazi. steve? >> i have to start with a mea culpa. i was talking to somebody who has been looking in the benghazi episode a week ago. right when the story broke, people being let go or fired or forced to resign. i was told at the time they are not actually being forced to resign. i didn't even follow the story, or ask additional questions because i thought it was unbe likely and outrageous. of course they're fired and forced from their jobs. there is very little coming

off the heels of benghazi. we'll hear from hillary clinton. when? and how much time will she spend on capitol hill answering the questions directly? she doesn't want to do this. she hasn't wanted to talk about benghazi from the beginning. whether it was september 16, when she was, she decided not to do the briefings on sunday shows. and sent susan rice instead. or september , 20 appeared before congress and gave what is described to me as short answers. certainly not forthcoming and not eager to answer the questions. >> doug: a.b., she said through the support she will testify before congressional committees and she will implement the recommendations made by the arb. >> i think she will. i don't think she has a choice. i think she wants to and i think she put it off. i believe as i said here before you don't lie when you're secretary of state about a concussion. it's not something you can get away with lying about. but i do believe that she is

dreading it. but she will do it. she will answer the questions about whether or not people are truly punished as a result of the report. for security failures and other things in the state department. i think that the timing of it will be interesting. political pressure is put on the administration over john kerry's nomination hearings. and whether or not they will move forward with that until they hear from her. that could force her to do it sooner or force a big political fight in middle of the cliff and everything else that just simply delays the whole process. >> it has been coming up on two week since she had a bout of the flu, dehydration and the result of falling down and getting con suggestion. laura ingram called it an

immaculate concussion. >> i think it's strange when john mccain had to give his medical history and high detail. i'm not interested in the details but the fact we haven't heard anything, we know as much about her concussion as we know about hugo chavez. this is an open society. she is secretary of state. disappeared and let us know about her condition. apartment from that, what is astonishing here is how little interest the press has in the continuing story and the continuing story is that everything you hear about benghazi affair is not true. the latest thing with four people will be responsible and accountable. we learned a week later as steve indicates who would have followed up on this, you know? people have to be held accountable. they're done, they are gone. they're not gone. the first assassination of

ambassador in 30 years? anything that turned out to be so? she has to go before the congress. she is in charge. >> bob corker, the ranking member of the senate foreign affairs committee said she must testify. other republicans vie to hold up the nomination for secretary of state if she does not. >> they should. she needs to testify. no question we need to hear from her. we need to hear from her before she leaves office. serious questions, number of which they laid out here repeatedly in the weekly standard that are not answere answered. i think we need to know why susan rice said what she said, who changed the talking points? and what hillary clinton had to do with preparing the talking points if anything? beforehand who made decisions on the security questions?

why didn't the security questions raise the upper level of the state department? the seventh floor as the arb reports. in the middle of the battle, why did we not send all the possible -- why not make all the possible efforts we could have to help the people in danger? >> doug: that is it for the panel. stay tuned for post holiday shopping ideas.

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